Indian shipbreaking prices declined on Wednesday amid sluggish demand from end-users. Suppliers have further reduced their offers. The daily Davis Index for Melting and HMS attachments declined by Rs600/mt ($8.26/mt) each to Rs30,500/mt and Rs31,500/mt ex-Alang, respectively.
Production in Alang has slowed down amid shortage of laborers and they are expected to be back at work after the festival of Holi on March 29. Demand from the rolling mills was low on Wednesday and as per few market participants, shipbreaking prices will remain under pressure this week.
The daily Davis Index for 8Ani declined by Rs450/mt to Rs34,550/mt ex-Alang and the index for 14Ani declined by Rs500/mt to Rs36,000/mt ex-Alang.
Mandi Gobindgarh, a major consumer of shipbreaking scrap, is still in the grip of scrap traders’ strike over GST-related glitches as their demands are not being met.
The daily Davis Indexes for 1kg and 2kg plates declined by Rs500/mt each to Rs31,700/mt and Rs32,500/mt ex-Alang, respectively.
Alang has also witnessed shortage of tonnage at the yards as freight rates have spiked and the competitors like Pakistan and Bangladesh are offering higher prices for the vessels.